Nanogate starts Initial Public Offering

Saarbrücken, 29 September 2006. The share prospectus of the Nanogate AG was approved yesterday by the Federal Financial Supervisory Authority (BaFin). With it all requirement for an initial public offering are complied and the nanotechnology starts with its roadshow. The company will be open for subscription from 12 to 16 October 2006 (planned). The price range is expected to be published on 11 October 2006. First listing in the Frankfurt Stock Exchange’s Entry Standard segment is planned for Wednesday, 18 October 2006. The company intends to use the IPO to finance planned growth and to extend its leading position.

The initial public offering will be up to 603,000 shares, of which up to 400,000, the overwhelming majority, will be from a capital increase and up to 125,000 from the sale of existing stock. The IPO also includes up to 78,000 existing shares as a greenshoe. The pre-greenshoe free float will probably amount to about 28% of the total number of shares issued.

The public offering is aimed at private and institutional investors in Germany. In addition, a private placement is planned in the European Union and in Switzerland. The IPO will be accompanied by the Landesbank Baden- Württemberg as lead manager and sole bookrunner and the Frankfurt investment bank equinet as co-lead manager. Private investors can subscribe at savings banks throughout Germany and at BW-Bank and comdirect bank AG. The Federal Financial Supervisory Authority (BaFin) approved the share prospectus on 28 September 2006. The price range will be fixed and announced during the management’s roadshow (decoupled bookbuilding process). The IPO still depends on the condition of the capital markets.

Focus on one of the most attractive segments in nanotechnology

Ralf Zastrau, CEO of Nanogate AG, said, “Nanogate is a profitable, high-growth company. We would like to continue to profit from the dynamic market environment and from growing demand for products and systems improved by means of nanotechnologically. Going public is therefore the appropriate way to support and finance our planned growth.” As an enabler, the Saarbrücken-based company bridges the gap between producers of raw materials and industrial conversion into products on the basis of platform strategies. Nanogate therefore provides the decisive interface for commercialising chemical nanotechnology. “We as enablers do business in one of the most attractive segments in nanotechnology,” Zastrau said.

Profitable growth further accelerated in first half of 2006

Nanogate has many well-known customer references and has successfully realised a large number of products in different market segments with companies such as ABB, Giesecke & Devrient, BSH, Kärcher and König & Bauer. Nanogate also relies on cooperation with established international industry partners. These partnerships with, for example, US companies Dow Corning and Ceradyne subsidiary ESK Ceramics have many benefits, including shorter development times, faster times to market, lower market entry risks and efficient market access. In the first half of 2006 the Nanogate Group boosted sales by 61% to about €3.7 million and reported earnings before interest and taxes (EBIT) of about €0.7 million (EBIT margin: 19.1%).

IPO facts & figures

Segment:

Open market Entry Standard, Frankfurt Stock Exchange

Symbol::

N7G

ISIN:

DE000A0JKHC9

WKN:

A0JKHC

Subscription period:

12 to 16 October 2006, private investors 15.00 hours CEST, institutional investors 16.00 hours CEST (planned, may be shortened/lengthened)

First listing:

18 October 2006 (planned)

Price range:

To be announced on 11 October (likely date)

Transaction volume::

€16.1 m to €24.1 m (planned, including greenshoe)

Total number of shares:

1.9 million ordinary shares (after IPO)

Placement volume:

Up to 400,000 ordinary shares from capital increase Up to 125,000 ordinary shares from sale of existing stock

Greenshoe:

Up to 78,000 ordinary shares from sale of existing stock

Offer category::

Decoupled bookbuilding process with capital increase and sale of existing shares

Shareholder structure:

Free float: 27.63% Nanogate Technologies GmbH¹: 61.79 % Nanotec Beteiligungen GmbH²: 10.58 % (post-IPO, pre-greenshoe)

Holding period:

Nanogate Technologies GmbH: 6 months³, NanoTec Beteiligungen GmbH: 12 months⁴

Designated sponsor:

Landesbank Baden-Württemberg, equinet Securities AG

Consortium:

Landesbank Baden-Württemberg (lead manager and sole bookrunner) and equinet Securities AG (co-lead manager)

Subscription opportunities for private investors:

BW-Bank, German savings banks, comdirect bank AG

¹ Shareholder of Nanogate Technologies GmbH are mainly venture capital funds (3i, Sal. Oppenheim, equinet ESCFI, SET) and some private investors
² All shares in NanoTec Beteiligungen GmbH held by the Nanogate AG management
³ Subject to Landesbank Baden-Württemberg approval
⁴ After 6 months subject to Landesbank Baden-Württemberg approval

Disclaimer:

This publication constitutes neither an offer to sell nor an invitation to buy securities. The shares in Nanogate AG (the "Shares") may not be offered or sold in the United States or to or for the account or benefit of "U.S. persons" (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act")). No offer or sale of transferable securities is being made to the public outside Germany. The offer in Germany will be made exclusively by means of and on the basis of a prospectus published and available free of charge at Nanogate AG, Gewerbepark Eschbergerweg, D- 66121 Saarbrücken and will additionally be published on the website of the company at www.nanogate.com.

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